Specific performance

Definition

Specific performance is a legal remedy in contract law that compels a party to execute their contractual obligations as agreed, rather than simply paying damages for failing to do so. This remedy is typically used when monetary compensation would not be adequate to resolve the harm caused by a breach, particularly in cases involving unique goods or real estate. Specific performance highlights the importance of fulfilling one's promises and upholding contractual agreements.

5 Must Know Facts For Your Next Test

1. Specific performance is most commonly sought in contracts involving unique items, such as art or real estate, where substitutes are not available.
2. Courts may deny specific performance if it would cause undue hardship to the breaching party or if the contract lacks clarity.
3. This remedy is not typically available for personal service contracts, as courts prefer not to compel individuals to work against their will.
4. To obtain specific performance, the party seeking it must demonstrate that they have fulfilled their own contractual obligations and that the terms are clear and specific.
5. The availability of specific performance as a remedy varies based on jurisdiction and the specifics of each case.

Review Questions

• What factors do courts consider when determining whether to grant specific performance as a remedy for breach of contract?
  • Courts evaluate several factors when considering whether to grant specific performance, including whether the subject matter of the contract is unique, if monetary damages would suffice as compensation, and whether the requesting party has fulfilled their own obligations under the contract. Additionally, they assess whether enforcing the contract would impose an unreasonable burden on the breaching party. Clarity of the contract's terms is also critical; if the agreement is vague, specific performance may be denied.
• Discuss how specific performance interacts with the concepts of compensatory damages and equitable remedies in contract law.
  • Specific performance is an equitable remedy distinct from compensatory damages, which focus on monetary compensation for loss. While compensatory damages aim to put the injured party in a position they would have been in had the breach not occurred, specific performance compels actual compliance with the contract's terms. Courts generally prefer monetary damages for breaches unless unique circumstances arise; therefore, specific performance is considered a more extraordinary remedy within the broader category of equitable remedies.
• Evaluate the implications of granting specific performance in real estate transactions and how this reflects broader legal principles in contract law.
  • Granting specific performance in real estate transactions underscores the principle that land and property are unique assets; thus, monetary damages may not adequately compensate for loss. This reflects broader legal principles that emphasize honoring contractual commitments and the need for equitable solutions when traditional remedies fail. By compelling parties to complete their agreements, courts aim to uphold the integrity of contracts and encourage parties to negotiate with seriousness. The decision also impacts market expectations and helps maintain stability in property transactions.

Related terms

Compensatory damages: A monetary award granted to a party in a lawsuit for the losses suffered due to another party's breach of contract.

Equitable remedies: Judicial orders that require a party to act or refrain from acting in a certain way, including specific performance and injunctions.

Breach of contract:

A failure to perform any term of a contract, including non-performance, or performance in an inadequate manner.